Just because it’s a holiday week doesn’t mean the news stops. If anything, it seems like things have gotten more chaotic over the past few days.
President Donald Trump’s signature Big Beautiful Bill has passed the Senate, and unfortunately, nobody sees much of a way for the House of Representatives to stop it from becoming law. That could be a kill switch for the American EV industry, yanking subsidies and incentives meant to get folks to build infrastructure and buy electric. Some big-volume car-sellers like Carvana and CarMax are upset at the news and are imploring lawmakers to think twice about what they’re doing here.
But others, like some other not-surveyed dealerships, say good riddance. It’s all right here in today’s edition of Critical Materials, our morning roundup of industry and technology news. Also, China’s Zeekr brand retools its own EV platform to handle a gas engine. Let’s hop in, folks.
30%: The EV Tax Credit May End Sept. 30
Photo by: InsideEVs
It’s official: the Senate has passed President Trump’s BBB, a huge, multi-fasceted bill that he views as a reset of everything wrong with America. Most pertinently for us here at InsideEVs is that this bill comes with language to officially kill the EV tax credits, both used and new.
Initially, the bill was stopped for a second while senators debated certain aspects of the bill to be amended or removed. Unfortunately for us, the bill as written now would end EV tax credit sooner than we thought.
Originally, the bill would end the EV tax credit within 180 days of its passing. Now, the new and revised language in the bill would end the program on Sept. 30.
Naturally, this has gone over with dealerships and automakers as well as a wet fart in a crowded elevator. And reporting from Automotive News has revealed that some dealerships really don’t want that tax credit to go:
The National Automobile Dealers Association, which represents franchised dealers, had asked Congress to give retailers adequate time before eliminating the incentives, the group said June 27 in a statement to Automotive News.
“Dealers are still carrying a high EV inventory with approximately 140,000 EVs currently on dealer lots. If EV tax credits are going to be repealed, NADA urges Congress to include a reasonable transition period,” the group said.
Lucid Motors interim CEO Marc Winterhoff told Automotive News that the end of the tax credit would “make it very difficult for new players in the market.”
The Electrification Coalition, an EV advocacy group said killing the credits “driving much of the nation’s manufacturing investment at this critical juncture would effectively wave the white flag of defeat, ceding control over the future of transportation to China … The House must reject this act against the interest of the American people.”
A House version of the budget bill would have eliminated the credit at the end of the year. Now the House will have to decide if it is willing to accept an earlier end to the credit.
I’ll reiterate that last part: the Sept. 30 deadline isn’t official until the House resolves its version of the bill and Trump signs it into law. But if you’re shopping for an EV, get moving.
It’s safe to say that the $7,500 tax credit and $4,000 used car tax credit have really been a boon to EV and PHEV buyers across the country. Without it, I don’t think we’ll see anywhere near the sales most are expecting, especially since so many forthcoming EV models are dependent on that tax credit. In fact, the Slate pickup’s $20,000 base price is contingent on the $7,500 tax credit. American-made cars like the forthcoming Rivian R2 and the Chevy Equinox EV are no doubt helped along with this credit.
What are we doing here, folks? Do we want a successful EV industry or not?
60%: Actually, Go Ahead and Kill the Tax Credit, Say Some Dealers
Photo by: Kevin Williams/InsideEVs
Not everyone is all upset at the death of the EV tax credit. This week at WardsAuto, a piece went live that advocates for killing the EV tax credit as a whole, citing dealers who didn’t think it was effective anyway:
Recently, dozens of dealer groups – including CarMax and Carvana – partnered with battery analytics firm Recurrent to send an open letter to Congress, urging lawmakers to revise the current structure of the federal EV tax credit for used vehicles.
Their message: The program isn’t working. The majority of desirable used EVs are aging out of eligibility, leaving customers confused and frustrated – and dealers empty-handed.
What the letter doesn’t say outright, but what’s clear between the lines, is this: The market has moved past the need for these kinds of incentives. Dealers who spoke with WardsAuto are tired of having to explain – and often apologize for – a tax credit that barely applies to the vehicles customers actually want. And, candidly, most of their buyers – yes, including those who buy used EVs – almost ignore the topic.
The piece isn’t wrong that there’s challenging language in how the program is implemented. But it insists that instead, it should just be canned entirely. The market is mature, and new EV shapes from brands are okay to stand on their own. Instead, we should be investing in the other aspects of EV infrastructure, not just the purchase price, these critics say.
First of all, the last administration was trying to do exactly that, until this one went and said “nope.” And while we need more investment in all aspects of EV ownership and use, let’s not pretend that affordability is still in the top five concerns when it comes to getting people behind the wheel of electric cars. Nor should we pretend that Trump’s bill will somehow incentivize EV infrastructure development. We’re about to cut our EV infrastructure off at the knees, but not replace it with much else.
No matter how we look at it, we’re definitely facing a slowdown in EV adoption here in the U.S., while the rest of the world continues on.
90%: Zeekr 9x Adds Gas To An EV Platform
Photo by: Zeekr
Then again, even China—which is dramatically ahead on EV tech—sees a future for gas power too. But for that industry, it means more hybrids and extended-range EVs.
Rising EV and hybrid brand Zeekr, a corporate cousin to Polestar and Volvo, has released details of its latest flagship “Super Hybrid” crossover. We’ve already seen the 9x before at this year’s Shanghai Auto Show, but they’ve sent us over some details about the car itself. Here’s the latest:
Thanks to the state-of-the-art SEA architecture, over 20 different models have been introduced to our global customers in the last 5 years. The SEA-S architecture, a derivative of the original Sustainable Experience Architecture (SEA), is a high-tech industry-leading mobility solution from Zeekr. It supports a wide range of mobility products and blends the best of BEVs and PHEVs technologies.
The benefit of the 900V SEA-S allows the charging from 20% to 80% in 9 minutes. It will also bring its flagship SUV with the longest, 380km CLTC, pure electric driving range.
This is a novel invention, even if the 9x is unlikely to ever come to the United States. While other manufacturers are working to electrify existing gas-oriented electric vehicle platforms, it seems like Geely is going backward, adding gas engines to its EVs.
The 9x isn’t the first, either. A few weeks ago, it was announced that the Lynk & Co Z10 will have a PHEV version.
100%: Are You Rushing To Buy An EV Soon?
Photo by: InsideEVs
I’ve been in EV car limbo for a few months now, since my 2012 Mitsubishi i-MiEV officially bit the dust in January. So far, my gas-powered Fiat 500 Abarth has served my commuting duty between manufacturer press loaner vehicles. But it’s kind of a little bit of a bad look to drive a gas car when you work at an EV site, no?
Regardless, I’ve been waiting for the deal of the century on one of the handful of U.S.-market EVs that I actually like. With this new bill’s impending doom, it looks like it’ll be now or never. Guess I had better get to the dealership soon.
How about you? Are you planning to get a car before the tax credits dry up?
Contact the author: Kevin.Williams@InsideEVs.com
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